Topic: Module 7: Midterm Exam
Order Description
QUESTION 1
1. What is not part of the presumptions of the business judgement rule concerning directors?

a. That the decision they reached was profitable to the corporation.

b. That they acted on an informed basis.

c. That they acted in good faith.

d. That they acted in the honest belief that the action taken was in the best interest of the corporation.
QUESTION 2
1. Which of the following factors does the IRS consider indicative of an independent contractor relationship with a company (as oppose to an employeerelationship)?

a. The worker uses his/her own equipment and supplies to perform the services.

b. The worker is given detailed instructions on how, when, and where to perform the work.

c. The worker only works for the company.

d. The worker is required to perform the services personally (i.e. he/she can not have an assistant or subcontractor perform the work for the company).
QUESTION 3
1. In antidumping cases,

a. The International Trade Administration determines whether foreign goods are being sold in the United States at less than fair value (LTFV).

b. The International Trade Commission determines if there is an injury to a U.S. industry as a result of such sales.

c. Remedial action will be taken only if findings of both LTFV sales and injury are present.

d. All of the answer choices are correct.

QUESTION 4
1. What is the primary function of the National Labor Relations Board?

a. To mediate labor-management disputes.

b. To decide unfair labor practice cases brought before it by the general counsel.

c. To promulgate binding regulations defining unfair labor practices.

d. To uphold the right of employees to bargain collectively.

QUESTION 5
1. The Alexo Corporation has been charged in a United States court with violation of American antitrust laws in its foreign dealings. The firm has raised the defense that its actions were compelled by the government of its host country. Alexo based its defense on the__________ doctrine.

a. act-of-state

b. sovereign compliance

c. sovereign immunity

d. Treaty of Rome

QUESTION 6
1. Which of the following statements is TRUE with respect to a company officer who would like to make a personal investment that could be an advantageous opportunity for the corporation he/she works for.

a. The officer can not make this personal investment under any circumstances because it would be a violation of his/her fiduciary duty.

b. The officer must disclose some of the facts about the investment opportunity to his/her corporation.

c. The officer can only make this personal investment after full disclosure to the corporation and if the majority of disinterested directors reject taking the investment opportunity for the corporation.

d. If the officer makes the personal investment under any circumstances whatsoever, the corporation may recover from the officer any profits of which the corporation has been deprived.
QUESTION 7
1. Which of the following is NOT a non-tarriff barrier?

a. Government subsidies.

b. Import quotas.

c. Complex custom procedures.

d. An import or export duty or tax placed on goods as they move in or out of a country.

QUESTION 8
1. The Pregnancy Discrimination Act does NOT…

a. require employers to treat pregnancy as other disabilities are treated.

b. require women disabled by pregnancy to be provided with the same benefits as other disabled workers.

c. require an employer to provide paid sick leave benefits to pregnant women if it does not provide them to other disabled workers.

d. prevent termination because of pregnancy.

QUESTION 11
1. Title VII of the Civil Rights Act of 1964 applies to…

a. the hiring process.

b. discipline.

c. discharge.

d. all of the answer choices are correct.

QUESTION 17
1. Under which of the following doctrines is it held that a foreign sovereign cannot be sued unless it engages in illegal commercial conduct?

a. act-of-state

b. sovereign compliance

c. Timberlane

d. sovereign immunity

QUESTION 19
1. Which of the following actions is not prohibited by The Foreign Corrupt Practices Act?

a. Offers of payments to government officials to influence a decision on behalf of the firm making the payment.

b. Payments to government officials to influence a decision on behalf of the firm making the payment.

c. Payments to low-level officials for expediting the performance of routine government services.

d. All of the actions listed are prohibited by The Foreign Corrupt Practices Act.

QUESTION 20
1. What is a valid employer defense to a disparate impact charge?

a. The employer did not intend to discriminate.

b. The employment practice is job-related and consistent with business practice.

c. The disparate impact was not the result of extreme recklessness or gross negligence on the part of the employer.

d. The practice is widespread and accepted in the industry.